FAQ:

Tokenomics, Emissions & Investors

What is the difference between GMX & esGMX?

esGMX tokens are escrowed GMX; locked GMX tokens that are subject to vesting rules. Your esGMX can either be staked, to earn rewards just like normal GMX tokens do, or vested in your GMX or GLP Vault. They can not be sold. While vesting, esGMX tokens earn no rewards and linearly unlock to become GMX over the course of 365 days.

How do I vest my esGMX?

When you initiate vesting via your GMX or GLP Vault, the proportional amount of GMX or GLP tokens you used to earn your esGMX rewards is reserved.
Staked GMX, esGMX, GLP and Multiplier Points can all be reserved this way, in your Vaults, to vest your esGMX. While reserved for vesting, these tokens will continue to earn rewards, but the vesting esGMX themselves do not.
You can click on ‘deposit’ at the bottom of the app.gmx.io/#/earn page, at the GMX/GLP vesting vaults, to see the number of tokens needed.

What is the GMX max supply?

The max supply of GMX is 13,250,000. Minting beyond the max supply of 13.25 Million is subject to strict conditions and a DAO vote, plus controlled by a 28-day timelock.

Which VC’s are invested in the GMX protocol?

Unlike many projects of a similar scale and traction, GMX has had no private fundraising rounds with institutions such as venture capital firms or crypto hedge funds.

What does the unlock calendar look like?

There are no “unlocks” of the base GMX token
However, there were emissions of esGMX, escrowed GMX tokens, to GMX stakers until March 2023. These esGMX emissions are subject to vesting rules. For details, see this Governance discussion.

You can also see the current total supply of esGMX on https://app.gmx.io/#/earn on both Arbitrum and Avalanche (note that they are separate)

What is the planned, long-term emissions schedule?

esGMX emissions have ended. The main use of esGMX emissions was to incentivize the decentralization and usage of the protocol. As GMX adoption increased, esGMX emissions to stakers and liquidity providers decreased.

Does GMX have sufficient runway? What about long-term financial sustainability?

GMX has sufficient runway to compensate its paid contributors for many years and has a Treasury of over $40 Million.

Product & Trading

Is it possible to set a stop loss?

You can add ‘triggers’ to any open position. If the trigger is above the mark price, it’s used as a take-profit order. If the trigger is below the mark price, it’s used as a stop-loss order. Both can be used simultaneously. Once the trigger is hit, a market order is used for execution. The actual exit price can deviate slightly from the trigger level itself, due to price movement.

Is the 1-minute chart available?

Yes it is.

Why did my limit order not execute even though the price reached that level?

Orders are not guaranteed, as it takes a few blocks before your on-chain order gets triggered and picked up by the Keepers. Prices moving too fast, as well as slippage maximums, can cause orders not to trigger. You can set your allowed slippage in the Settings menu of the App.

Why does it not let me long/short a certain asset?

The protocol has a maximum cumulative position size for longs/shorts on each specific asset. These maximums are determined by the available liquidity and additional risk parameters. If the maximum amount of longs/shorts on your asset has already been reached, users can't open new positions on that specific asset, until existing positions are closed.

What is the fee I pay to borrow trading assets, and how is the borrowing fee calculated?

The borrow fee per hour will vary based on the asset’s utilization.

Which alternative RPCs are available?

you can use the backup URL https://rpc.ankr.com/arbitrum from Ankr, or create one yourself via Alchemy or QuickNode. Switch the RPC URL in the network settings of your wallet. You can find additional RPC’s for both Arbitrum One and Avalanche C-Chain on Chainlist, a community-curated RPC directory for various chains.

Contributors & Governance

Why are the core contributors anonymous?

Privacy and personal safety.
Ability to control their public image and have a clear separation between past and current endeavors (both within crypto and beyond).
Regulatory and jurisdictional uncertainty.

How are the core contributors incentivized?

Paid contributors receive monthly compensation, in a mix of stablecoins and GMX tokens.

How does the governance process work and how can community members contribute?

Community members are encouraged to participate in in-depth governance discussions at the GMX DAO Governance Forum: https://gov.gmx.io/
Ideas and proposals with a certain degree of community enthusiasm are subsequently put up for Snapshot vote, to gauge community support.
Proposals that receive majority support, are scheduled to be executed at an appropriate time.
While discussions and voting involving contributors happen within the GMX DAO social media platforms, it doesn't hold any binding authority over them.

Security & Risk

Are there risks to investing in the protocol?

The risks depend on in what capacity you’re participating in GMX.
For GM / GLV holders, the key risks to be aware of are:
- Counterparty risk. The liquidity pools act as the counterparty to traders on the platform. That means that as a GM holder, you are exposed to the PnL of traders, based on your proportional contribution to the pool. If traders make money, GM loses money, and vice versa.
- Token price risk. The assets in the GM pools are exposed to price volatility.
For GMX holders, the key risks to be aware of are:
- Token price risk. GMX is a relatively early-stage protocol and, as such, is prone to price volatility.
- Liquidity risk. GMX is significantly less liquid than large-cap tokens such as BTC and ETH.
Both GMX and GM/GLV holders have these risks in common:
- Smart contract risk.
- Blockchain safety and liveness risk.
- Admin key and contract upgradeability risk.
Is there any bug bounty for Whitehat hackers?
There is an active bug bounty for GMX on Immunefi, with one of the highest maximum bounties in the entire crypto industry: $5 Million.

DISCLAIMER:

The information, content, and materials provided here are for general informational purposes only and do not constitute financial or investment advice, nor a legally binding agreement.

Note that discussions and voting involving contributors may occur on GMX DAO social media platforms, but contributors are independent actors, and nothing discussed or proposed should be understood as an obligation for an individual contributor to act.

Please conduct your own research and consult with appropriate professionals before making any decisions based on the information provided on this website.